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Qfin Holdings, Inc. (QFIN) Q4 2025 Earnings Call Transcript

Qfin Holdings Inc. - Sponsored ADR (QFIN) came out with quarterly earnings of $1.12 per share, missing the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $1.82 per share a year ago.

SHANGHAI, China, March 17, 2026 (GLOBE NEWSWIRE) -- Qfin Holdings, Inc. (NASDAQ: QFIN; HKEx: 3660) (“Qfin Holdings” or the “Company”), a leading AI-empowered Credit-Tech platform in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2025 and raised semi-annual dividend.

I upgrade Qfin Holdings from Hold to Buy, targeting a 61% upside on deep undervaluation and a robust 9%+ dividend yield. QFIN trades at 0.60x price/book versus a 1.59x all-time historical average and 1.19x the 5-year average. The sector median stands at 1.34x. Despite macro headwinds and flat loan facilitation, QFIN demonstrates resilience with steady user growth and disciplined cost management.

Qfin Holdings (QFIN) is rated a Buy, offering an asymmetric risk/reward. Trading at ~2.3x earnings with a $1.5B cash pile (effectively trading near cash value) and a 73% payout ratio. Regulatory reforms, such as the 15th Five-Year Plan's new Anti-Unfair Competition Law effectively bans destructive price wars and "below-cost" pricing, creating a regulatory floor for QFIN's margins. QFIN is successfully transforming from a lender into a "Tech Utility" for banks, evidenced by a 218% sequential explosion in the Technology Solutions segment, partnering with over 20 financial institutions.

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